CX Daily: China’s ‘Zero-Covid’ Looks Done. So, What To Expect Next?
Cover Story: China’s ‘zero-Covid’ looks done. So, what to expect next?
It was the 25th day that Guangzhou resident Fang Yuan had been confined to her home under lockdown when she was disturbed by a loud noise. A cacophony of machinery and clearance work erupted to break the silence that had settled over the neighborhood after isolation barricades had gone up weeks earlier as Covid raged across the city and much of China.
Surprised by the commotion, Fang looked out her window and was astonished at what she saw: The red barricades were being torn down.
It was Wednesday, Nov. 30, which will likely go down as the day that China’s central government finally relented and began shifting away from its almost three-year-long hyper-restrictive “zero-Covid” policy that at times saw hundreds of millions under some form of lockdown.
Shanghai, Hangzhou join ranks of Chinese regions easing Covid rules
Beijing city government denies rumors that Covid controls set to be scrapped
FINANCE & ECONOMY
China’s services slump extends into third month, Caixin PMI shows
China’s services activity contracted for a third straight month in November, hitting a six-month low, as prolonged Covid-19 containment measures battered consumer-related businesses and dampened confidence, a Caixin-sponsored survey showed Monday.
The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in services industries such as retail and travel, dropped to 46.7 from 48.4 in October. Readings of less than 50 indicate contraction.
The sustained contraction in services activity mirrored that in China’s vast industrial sector — the Caixin China manufacturing PMI for November, released Thursday, stood at 49.4, the fourth consecutive month of a below-50 reading. The Caixin China General Composite PMI, which covers both the manufacturing and services sectors, fell to 47 from 48.3 in October.
Economists split over China’s 2023 outlook
As the government tries to bring China’s economy back on track by gradually moving away from its “zero-Covid” policy, economists remain divided over the country’s growth projections for next year, with forecasts split between 4%-5% and 5%-6%.
China could record a 5.8% GDP growth rate in 2023 provided there’s a smooth reopening, said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered Plc, at the annual meeting of the International Finance Forum (IFF) Saturday.
Quick hit /
Editorial: Reform and opening-up is needed to get China’s economy back on track
BUSINESS & TECH
Hui Ka Yan presides over an internet meeting at China Evergrande Group Dec. 2, 2022. Photo by Evergrande.
Reports of the death of Hui Ka Yan may have been greatly exaggerated
Reports of the death of billionaire Evergrande founder and Chairman Hui Ka Yan may have been greatly exaggerated.
After rumors circulated online of Hui’s possible suicide, insiders of debt-stricken developer China Evergrande Group and several external independent sources denied them. Some Evergrande insiders released an internal WeChat group chat clip showing that Hui sent a 50-second voice message to executives Friday afternoon.
Tsingshan expands investment in Zimbabwe
Chinese stainless steel and nickel giant Tsingshan Holding Group Co. agreed with the government of Zimbabwe to expand its investment in steel and coke capacity and start cement and lithium mining and processing in the southern African country, Tsingshan said Friday.
Zimbabwe President Emmerson Mnangagwa and Tsingshan’s founder and Chairman Xiang Guangda oversaw the signing of the agreement Tuesday in Harare.
Quick hits /
China’s 2023 Grand Prix will not take place due to Covid
Huawei pushes smartwatches in Japan as U.S. sanctions bite
Long Read /
How Jiang Zemin helped coin ‘socialistic market economy’
Jiang Zemin’s life in pictures
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